Application of revenue management practices to the theme park industry

Revenue management (RM) has been an essential strategy to maximize revenue for many capacity-limited service industries. Considering the common industry characteristics of traditional RM industries, the nature of the theme park industry suggests potential for enhancing revenue by exercising a variety of RM techniques. This study suggests practices for theme park operators for successful RM application. In addition, this study examines how customers perceive RM practice in the theme park industry compared to a traditional RM industry, hotel industry. The findings indicate that customers seem to perceive RM practice in the theme park industry as relatively fair practices as similarly perceived for the hotel industry. The findings are encouraging for the theme park industry because a relatively similar level of its customers’ perceived fairness of the RM practice compared to the hotel industry suggests that adoption and implementation of the RM practice has great potential to become successful as it has been in traditional RM industries, such as hotels.     

Consumers’ willingness to pay for green initiatives of the hotel industry

This paper examines hotel guests’ willingness to pay a premium for environmentally friendly and sustainable practices of the U.S. hotel industry. Specifically, the goal of this research is to investigate the relationship between the level of U.S. hotel guests’ environmental concern, measured by the New Ecological Paradigm Scale (NEP) and their willingness to pay (WTP) a premium for hotels’ “green practices.” This study found that U.S. hotel guests with higher degrees of environmental concerns declare a higher willingness to pay premiums for hotels’ green initiatives. This avowed willingness supports the social identity theory and the means-end theory. In addition, based on the affect-based complementarity proposition, this study also examined the effect of hotel type on WTP in the U.S. hotel industry, and found that luxury and mid-priced hotel guests are more willing to pay premiums for hotels’ green practices than economy hotel guests.     

Restaurant revenue management: Do perceived capacity scarcity and price differences matter?

Revenue management (RM) has become an indispensable strategic tool in capacity-constrained service industries whose total revenue often depends on the abilities of firms to use capacity efficiently. The restaurant business is similar enough to traditional RM industries such as hotels and airlines, but restaurants also have unique characteristics that pose special challenges to restaurant operators. Among the unique characteristics of restaurants are the relative flexibility of service capacity and the flexible duration of a meal, which are important subjects to be considered in the implementation of RM practices. In addition, when a restaurant operator practices a demand-based variable pricing policy to adjust demand, the magnitude of the price differences may influence fairness perceptions of the policy. Based on the commodity theory and the equity theory, this study hypothesizes that two main effects, namely, perceived scarcity of capacity in a restaurant and price differences, influence the perceived value of a restaurant's offerings and the fairness perceptions of a restaurant's RM practices. As hypothesized, the negative effects of price difference on fairness perceptions are supported by the results. However, findings suggest that perceived scarcity of capacity influences neither the perceived value of a restaurant's expected offering nor the fairness perceptions for a restaurant's RM practices.     

Hotel revenue management and the Internet: The effect of price presentation strategies on customers’ willingness to book

A decision that is intrinsic to the application of hotel best available rate (BAR) pricing is how to present the BARs for individual nights within a multiple-night stay to prospective hotel guests. We discuss two alternative price presentation strategies, a blended and a nonblended rate approach, and examine their effect on customers’ willingness to pay in the context of Internet-based reservation requests. Study findings indicate that a nonblended rate presentation approach generates higher willingness to book ratings than a blended rate presentation approach. Furthermore, when it comes to nonblended rates, familiarity with BAR pricing moderates the effect of rate sequence on customers’ willingness to book.     

Are lodging customers ready to go green? An examination of attitudes,demographics, and eco-friendly intentions

This study attempted to answer the following research questions: (1) Do eco-friendly attitudes affect hotel customers’ environmentally friendly intentions to visit a green hotel, to spread word-of-mouth about a green hotel, and to pay more for a green hotel?; (2) If so, which facet of attitudes has the greatest impact?; (3) How do their expressed intentions differ across gender, age, education, and household income?; (4) How do such expressed intentions differ based on the existence of previous experience staying at a green hotel? A total of 422 cases were used to answer the research questions. Findings indicate that customers’ green attitudes are, in general, significantly associated with their expressed intentions to visit a green hotel, to spread word-of-mouth about a green hotel, and to pay more for it. Gender differences in such intentions were found, and the intentions were affected by their previous experiences with a green hotel. However, the eco-friendly intentions did not significantly differ across age, education, and household income.     

The effects of beach characteristics and location with respect to hotel prices

This paper measures the effects of beach characteristics and hotel location with respect to the beach on sun-and-beach hotel prices by using a well-established hedonic perspective. The paper’s main results are that, after controlling for the relevant variables, location in front of a beach increases the price of a room in costal hotels of Catalonia by a figure between 13 and 17%, and that a Blue Flag increases the price by around 11.5%. The effects on hotels’ prices of other beach characteristics (such as beach length, width, sand type or beach services) are also estimated. With these estimates, the paper ranks beaches according to their characteristics and provides a setting to assess different policies regarding beaches from the point of view of hotels, such as regeneration, maintenance or achieving a Blue Flag award.     

Customer Loyalty under the Influence of Revenue Management: The Case of Taiwanese Hotel Customers

Revenue management (RM), a common practice for the hotel industry, has been found to be very effective in generating extra revenue. However, prior studies have shown that the implementation of RM may potentially be in conflict with customer loyalty, the basis for long-term profitability. With a view to alleviating the impact of RM on customer loyalty, this study investigates the relationship between customer loyalty and RM knowledge level, and examines the moderating effect of the fairness perception for pricing based on a survey and the related statistical analyses. The findings suggest that hotel operators should facilitate the RM knowledge and the fairness perception of their customers so as to result in a potential win-win situation, in which profit-seeking hotels increase their revenue through better resource utilization, and heterogeneous customers benefit from more diversified services.     

Perceived justice in service recovery and behavioral intentions: The role of relationship quality

This study examined restaurant customers’ perceptions of justice according to service recovery effort levels and whether perceived justice influences customers’ future behavioral intentions. This study also investigated whether the effects of perceived justice on future behavioral intentions vary across customers’ relationship quality levels. The results showed that high recovery efforts were consistently evaluated highly in terms of perceived justice when compared to low recovery efforts, regardless of the level of relationship quality. Additionally, perceived justice brought about by service recovery efforts has a positive effect on customers’ future behavioral intentions. Hierarchical regression analyses suggested that relationship quality plays a moderating role between perceived justice and behavioral intentions in the distributive and procedural justice dimensions. Implications for the restaurant industry are also discussed.     

An investigation of green hotel customers’ decision formation: Developing an extended model of the theory of planned behavior

The current study sought to extend the theory of planned behavior (TPB), which is rooted in the theory of reasoned action (TRA), to more comprehensively explain the formation of customers’ intention to revisit a green hotel. In particular, the extended TPB incorporates the critical constructs in the consumer behavior and marketing literature (i.e., service quality, customer satisfaction, overall image, and frequency of past behavior) into the original TPB model. Results of a structural analysis revealed that the new model provides a better fit with the data, and explains significantly greater amounts of variance in revisit intention in comparison to the TRA and TPB. Added constructs in the new model considerably contribute to improve our understanding of the complicated process of green hotel customers’ decision-making. In this study, all relationships appeared to be significant as conceptualized according to the theory. In addition, a mediating effect of satisfaction and attitude was found. The article includes discussions on theoretical and managerial implications.     

Users’ perceptions of two types of hotel reservation Web sites

Building on the technology acceptance model (TAM), this study examined users’ perceptions of reservation Web sites: hotel-owned and third-party. As an experimental study, this study tested whether a modified variant of the TAM could be used to evaluate users’ perceptions of two different channels for hotel online reservations. Perceived usefulness was a key predictor of users’ attitudes toward using hotel-owned Web sites, while perceived ease of use was a key predictor of users’ attitudes toward using third-party Web sites. Both perceived playfulness and attitudes were two key predictors of users’ intentions to use hotel reservation Web sites. However, no significant differences in users’ perceptions were found between the two types of Web sites. Overall, users had more favorable attitudes and higher intentions to revisit third-party Web sites than hotel-owned Web sites.     

Perceptions of Chinese restaurants in the U.S.: What affects customer satisfaction and behavioral intentions?

This study investigates American customers’ perceptions of Chinese restaurants in the U.S., using the Importance–Performance Analysis (IPA) approach. This study also examines which attributes of Chinese restaurants influence American customers’ satisfaction and behavioral intentions. The IPA shows that environmental cleanliness and attentive service are two important areas where Chinese restaurateurs can make improvements. In addition, food taste and service reliability appear to be key attributes for Chinese restaurants’ success. Overall, this study indicates that food quality, service reliability and environmental cleanliness are three pivotal attributes to create satisfied customers and positive post-dining behavioral intentions. Chinese restaurant managers should reasonably allocate their limited resources to restaurant attributes based on their contributions to customer satisfaction and behavioral intentions.     

Perceived values,satisfaction, and behavioral intentions: The role of familiarity in Korean restaurants

This study examined American customers’ perceptions of values regarding dining experiences in Korean restaurants in the United States. Specifically, the effects of hedonic and utilitarian values on customer satisfaction and behavioral intentions were investigated. This study also examined the moderating effect of familiarity with Korean restaurants on the relationships among perceived values, satisfaction, and behavioral intentions. Overall, the results indicated that American customers valued the utilitarian aspects of Korean restaurants more than the hedonic aspects. Additionally, utilitarian aspects had a stronger impact on customer satisfaction and behavioral intentions than hedonic aspects. However, when considering customers’ familiarity level with the restaurants, hedonic aspects more effectively induced positive behavioral intentions in the low familiarity group, proving that familiarity has a moderating role. Conversely, utilitarian aspects appeared to be more influential in terms of the behavioral intentions of the high familiarity group. Theoretical and practical implications are also discussed.     

The respected manager… the organisational social capital developer

While ‘labour cost management’ is the main reason for the significant use of contingent labour in hotels, it needs to be managed differently from full-time labour. This research sets out to identify who, in a hotel context, manages the organisation's contingent labour, their managerial style and associated challenges. Results indicate that it is middle managers who are responsible for this workforce (the majority of hotels’ employees), with themselves usually being the least experienced managers in the hotel. The major challenge for managers is the continual labour turnover and the pressure to choose between a rationalistic or humanistic managerial approach, with an implied bias to that of rationalism. However, the most successful manager (defined in this research as the ‘respected manager’) uses a humanistic managerial approach with elements of rationalism, one which encourages the development of organisational social capital. Yet, humanism struggles to fit into rational, system-based organisations like hotels, and is often so stressful for managers taking this approach that it leads to the manager resigning.     

The impact of cultural orientation on perceived fairness over demand-based pricing

Revenue management practices are now being implemented by hotel firms on a global scale. This requires a finer understanding of how different cultures will relate to perceived unfairness that stems from the inequities inherent in demand-based pricing. In this context, individualism and collectivism as cultural constructs have been used extensively in cross-cultural research. These constructs are manifested with vertical and horizontal orientations that distinguish social patterns based on the acceptance of a hierarchy or conversely the preference over equality. The purpose of this study was to examine the relationships between vertical and horizontal orientations of individualism and collectivism with perceived price fairness over demand-based pricing. Findings indicate that vertical individualism has a significantly positive relationship with perceived price fairness. This can be attributed to the inherent acceptance of inequality in this cultural dimension combined with the emphasis of the individual over the collective unit. Marketing implications for lodging managers are discussed.     

The causality examination between demand uncertainty and hotel failure: A case study of international tourist hotels in Taiwan

The hotel business is highly sensitive to economic cycles, as the industry faces high frequency and high fluctuation of uncertainty over the demand for lodging services. Without a thorough consideration on the issue, hotels may undergo a business crisis. This research therefore investigates the influence of demand uncertainty on hotel failure by using the operation data of international tourist hotels in Taiwan during 1995–2008. The analysis applies two stages of estimation. The first stage employs a first-order autoregressive model, AR(1), to model lodging demand uncertainty. The second stage estimates the likelihood of hotels’ failure by using a logit model. The results are supportive to determine that the demand uncertainty causes hotel failures.     

The impact of the servicescape on the desire to stay in convention and exhibition centers: The case of Macao

This study examines the important role of the servicescape in relation to customers’ cognitive (beliefs about servicescape quality), affective (affect and satisfaction) and behavioral responses (desire to stay) in the context of convention and exhibition centers in Macao. Unlike previous servicescape studies, we include two personal customer characteristics, namely perceived sacrifice and value-for-money considerations, as potential moderators of the relationship between customers’ satisfaction and the desire to stay. Overall, our results suggest that servicescape elements positively influence customers’ perceived quality of the service, their affect, customer satisfaction and desire to stay. Furthermore, this study reveals that value-for-money considerations enhance the positive impact customer satisfaction has on customers’ desire to stay in convention centers and that customers’ perceived level of sacrifice has a direct effect on their desire to stay. Theoretical and managerial implications are also presented.     

Role of Perceived Fit With Hotels’ Green Practices in the Formation of Customer Loyalty: Impact of Environmental Concerns

With the increasing concern for ecological issues among hotel customers, this study pursues an investigation of customers' perceptions of hotels' core business in association with green practices and the resulting purchase-related loyalty (i.e. intentions to visit, accept price premiums, and recommend). In addition, the study examines the moderating role of environmental concerns in the relationships among perceptions of hotels' green practices and loyalty components. A survey of tourists using hotels showed that customers related hotels' core businesses and green practices positively, which consequently affected customers' purchase intentions toward the hotels. This study is unique in academia in that it investigates the fit theory for the hospitality industry by considering the impact of environmental concerns, while employing environmental practices as an emerging social cause, which is, increasingly, important for the society. This study is beneficial by providing hotel managers with insight into hotel customers' decision-making processes regarding green practices.     

Metamorphosis in hospitality: A tradition of sexual harassment

This study measures the incidence and tolerance of sexual harassment in hospitality in an effort to understand its causes. It examines the tradition of sexual behaviour in hospitality, exacerbated by hierarchical structures, the nature of hospitality work, the characteristics of typical front line workers, customers’ reduced sense of responsibility, and an emphasis on meeting customers’ needs. Customer contact is shown to be a key predictor of harassment, especially for young European women. The typical profiles of hospitality staff and the nature and traditions of the industry are considered important causes of harassment in hospitality.     

An exploration of HR policies and practices affecting the integration of persons with disabilities in the hotel industry in major Canadian tourism destinations

This study explores how and in which areas current HR practices affect the employment of persons with disabilities in hotel organisations in key tourist destinations across Canada. Despite few HR initiatives in some of the participating hotels, overall, no best HR practices in this area as described in other industry sectors could be found. The complexity of defining disabilities, the limited legal pressure and control of providing employment opportunities for persons with disabilities, and the limited awareness, understanding, and communication between employees with and without a disability seem to limit the attraction and integration of persons with disabilities. Further, managers’ preferences for aesthetic and self-presentation skills and a number of traditional hotel industry specific characteristics might hinder the recruitment of persons with disabilities. Employee selection criteria focusing on physical attractiveness and aesthetic skills need to be reviewed and realigned with ethical and non-discriminatory principles and guidelines. The development of a proactive strategy based on a sound business case, changes in areas such as communication and education, and closer cooperation with employment agencies could help hotels to demolish artificial barriers, stereotypes and perceptions of the employment of persons with disabilities.     

The search for the best deal: How hotel cancellation policies affect the search and booking decisions of deal-seeking customers

This study examined cancellation policies and their role in shaping travelers’ deal-seeking behavior, exploring the impact of cancellation fees and deadlines on three, mutually exclusive, customers’ hotel booking behavior categories: “Book”, “Book and Search”, and “Search”. 291 subjects, who participated in a week long online “booking game”, attempted to book a room in a virtual hotel and get the best deal. The results were tested using small sample t-test for comparing proportions between two independent populations, non-parametric multiple pairwise comparisons, and multinomial logit regression models. The findings indicate that the cancellation deadline affected participants’ behavior while the size of the cancellation fee had no statistically significant impact. In addition, there was no significant difference between lenient cancellation deadline and no cancellation policy.